LAS VEGAS (FOX5) — Gov. Joe Lombardo announced Friday that Nevada will participate in the Federal Tax Credit Scholarship Program, a new school choice initiative created by the One Big Beautiful Bill Act.
The decision to opt into the program expands educational options for Nevada families and gives parents more control over where their children attend school, Lombardo said.
“I enrolled Nevada into the Federal Tax Credit Scholarship Program to empower families with the freedom to choose education options that best fit their children’s needs,” Lombardo said in a statement. “This program marks a historic milestone for parental freedom and economic opportunity.”
Nevada has previously expanded educational freedom through open enrollment policies, increased transportation funding, and higher pay for charter school teachers, the governor noted.
How the program works
The Federal Tax Credit Scholarship Program takes effect Jan. 1, 2027, and allows individual taxpayers to receive a federal income tax credit for donations to approved nonprofit scholarship organizations.
Donors can contribute up to $1,700 per year and receive a dollar-for-dollar credit against their federal income tax liability. If the credit exceeds the donor’s tax liability, the unused portion can be carried forward for up to five years, according to the release.
The contributions fund scholarships for eligible K-12 students, which can be used for private school tuition, tutoring, special education services, and other qualified education expenses.
Eligibility requirements
According to the release, Scholarships are available to students from households with income at or below 300% of the area median income who are eligible to enroll in Nevada public schools.
Priority may be given to students who received a scholarship in the previous year or who have a sibling enrolled in the program, officials said.
Nevada’s role
The governor’s office said the state is responsible for determining how nonprofit scholarship-granting organizations can apply for participation and must submit an annual list of qualifying organizations to the U.S. Treasury Department by Jan. 1 each year.
Eligible organizations are defined under federal law as tax-exempt 501(c)(3) nonprofit organizations, including educational nonprofits, universities, and religious organizations. These groups may retain up to 10% of scholarship funds for administrative costs.
Additional information about Nevada’s application process will be available once the U.S. Treasury Department issues further guidance, state officials said.
Residents of other states may still donate to eligible scholarship organizations operating in Nevada and receive the federal tax credit, according to the program rules.
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